The federal government introduced a new auto policy on Saturday designed to promote electric vehicles and increase localization within the domestic automobile industry. Speaking at a press conference in Islamabad, Information Minister Attaullah Tarar, accompanied by Haroon Akhtar Khan, the Adviser to the Prime Minister for Industries and Production, stated the policy was developed following "extensive consultations" with stakeholders, technical data analysis, and a comparative study of international models.
Tarar stated that the policy intends to promote innovation, value addition, and localization to create jobs and enable vehicle exports. He noted that promoting electric vehicles would help lower carbon emissions and the petroleum import bill. The minister also highlighted that incentives have been introduced for the establishment of charging stations.
The new policy specifically focuses on promoting electric motorcycles and scooters. Tarar said their adoption is essential for addressing environmental pollution and securing economic benefits through carbon credits. He explained that the shift toward electric vehicles is necessary to reduce Pakistan's reliance on imported fuel, noting that the rising import bill places an excessive burden on the economy and ordinary people. Tarar stressed that if the fuel import bill is reduced, saved resources can be diverted toward healthcare, education, infrastructure, and public facilities.
Regarding localization, Tarar said the policy seeks to encourage manufacturers to build production facilities in Pakistan for both domestic use and export. He stated, “Unless vehicles are manufactured locally and exports begin, the country will not reap the full benefits of this sector in terms of investment and employment.”
The minister remarked that decades of protection for the local industry through high import duties did not deliver the "expected improvements" in innovation, value addition, and vehicle quality for Pakistani consumers. He noted that while the protection was meant to ensure better quality and facilities for ordinary consumers, the industry failed to make the expected progress.
